Reasons of change

[webfact]

Probe into SEC chief's role in takeover

By Siriporn Chanjindamanee

The Nation

Korn warns action will be taken if any wrongdoing found in attempt to seize control of shipping firm TTA

Finance Minister Korn Chatikavanij has ordered a probe into the alleged involvement of financial bigwig Vijit Supinit in the attempted hostile takeover of a major shipping company.

Following instructions from Korn, the Stock Exchange of Thailand and the Securities and Exchange Commission will jointly investigate the alleged role of Vijit - the chairman of the exchange watchdog - in the attempted takeover of Thoresen Thai Agencies (TTA).

Vijit was allegedly part of a group of investors called "Bee Group", which controlled a 30-per cent stake in the shipping company, according to TTA president and CEO ML Chandchutha Chandratat on Thursday. The group reportedly also includes the former executive of a defunct finance firm, Veera Manakongtricheep, and Bee Taechaubol, who was earlier accused of embezzlement in International Engineering by SEC.

Korn said yesterday that he had told both watchdog organisations to probe this case, which he said was important on many levels.

First, the case might involve violation of the SET Act, as the group has acquired a substantial stake in a listed firm without making the requisite disclosure to the public as required for shareholdings exceeding 25 per cent.

Second, this case might also mean the group did not conduct a tender offer to buy the rest of TTA shares from general investors.

Lastly, the case might involve shares held by nominees, which would be illegal.

"This is an important case. If there is evidence of wrongdoing, legal action will be taken against those involved," Korn said. He added, "One of those facing accusations is the SEC chairman. We will have to raise the level of investigation, otherwise this case might impact on the SEC's image and trust in terms of regulation." However, he said that there should be no speculation on this matter as nobody has evidence to prove the truth as yet.

Meanwhile, the SEC yesterday wrote to the people allegedly involved in the hostile takeover of TTA, seeking clarification.

Thirachai Phuvanatnaranubala, secretary-general of the Office of the SEC, said that if the group had the intention to take over TTA, which is a listed company, they had the duty to conduct a tender offer for the rest of TTA shares in compliance with the SEC's rules. If the group does not comply with the rules, the SEC would carry out an in-depth investigation.

"As a regulator, we are in the spotlight in terms of doing our role. So, we will have to do our best in this case. We have a system of checks and balances in our work process that people can trust," he said.

Thirachai declined to comment on whether the SEC chairman could be allowed to be the chairman of a listed company. However, he said SEC rules do not prohibit a person holding the position of chairman or director of the SEC board from being a director of listed companies.

-- The Nation 2011-05-28

[DarwinK]

Interesting - Vijit's name seems to come up as the center of controversy again and again over the years.

Edited May 29, 2011 by DarwinK